The answer is always the same (or should be) and that is, YES, BUT IF you buy right, know your market, and have a plan and means to execute it.The "R" word is a common word that comes up, the truth is, risk can be mitigated with the right strategy for the area and the right price for the investment.What do you want to do?

There are Lots of options that would take no money and almost no risk when executed right.

With 1st position lien, with an insurance policy at full replacement value (usually 1.6-1.8% of loan amount), and by a signed executable quit claim deed should the borrower fall 30 days behind payment.

I agree with Jason, the extra time between fully executed adendums and a 3 day inspection clause should be sufficient to evaluate any large (potential) problem you are worried about.Don't make any habits of backing out, but in such extreme cases where a large issue was identified after offer made, you certainly have a right and reason to either re-negotiate or back out.

I just need to draw up my strategy and execute . . .5 - I got some needed technical help, which resulted in a speedier BiggerPockets Blog.

You can have the LLC execute a loan package on the property equal to the $250k so that there is an asset and a liability hus deterring not preventing lawsuits

The trick is the execution.

Doing this once, you may avoid issues, doing it as a business is another thing altogether.This "equitable interest" BS that everyone gets from gurus needs some attention too, one, you only have an interest in a contract that has been executed between you and an owner, you do not advertise the property but the contract.

Most tenants do not show up so judgment is given to landlord if papers executed properly along with possession of the property.

The LLC protects your IRA from outside exposure, as does the ERISA protection enjoyed by a 401K (ask OJ Simpson about that).To the degree that each asset is held by the same entity within each plan, all are vulnerable to inside creditors (i.e. your slip and fall example).